Name: ________________________________________ Date: __________

Course Year & Section: _____________________ Score: _________

Instruction: Answer the following questions. Strictly NO ERASURES are
allowed.

I. TRUE OR FALSE. Write the word TRUE if the statement is correct and FALSE if it is wrong.
(10pts.)

________1. TQM evolved to satisfy customers in the more economical way.

________2. Top management understands quality costs better.
________3. Juran pioneered quality costs.
________4. Quality costs means cost of poor quality.
________5. Failure costs increases with prevention costs.
________6. Product qualification is prevention cost.
________7. Employees should not be involved in decision-making.
________8. Quality should increase productivity.
________9. Slogans lead to TQM.
________10. Employees should not have pride of workmanship.

II. MULTIPLE CHOICE. Choose the most appropriate answer. (20pts.) Write the letter on the
space provided. Use CAPITAL letters only.

____1. Total quality costs include

A. Prevention Cost
B. Appraisal cost
C. Failure cost
D. All of the above

____2. Cost incoming inspection is

A. Internal failure cost
B. External failure cost
C. Appraisal cost
D. Quality cost

____3. This is a tool to demonstrate cost of poor quality to top management as well as the entire
organization
A. Quality cost
B. Decreasing cost
C. Analyzing quality cost
D. Minimum cost

____4. Every activity in the organization in terms of return and indirect investment is the
responsibility of
A. Middle management
B. Top management
C. Lower management
D. All of the above
____5. Quality costs is an important tool for
A. Total quality management
B. Quality control
C. Cost of quality
D. Cost of product

____6. TQM is
A. Cost effective quality management

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 B. Preventive quality management
C. Continuous quality improvement
D. All of the above

____7. The father of Japanese quality movement is

A. Kaizen
B. Geneva
C. Edward Deming
D. King Richard

____8. Why do things go wrong?

A. Requirements are not defined correctly
B. Right tools available
C. Lot of motivation to do the job
D. All of the above

____9. Right decision calls for

A. Breaking teams
B. Right tools are available
C. Involving concerned employees
D. Fast action

____10. Doing right things include

A. Increasing working hours
B. Reducing wages
C. Improvement
D. Choosing right methods

____11. TQM gives benefit to

A. Customers
B. Society
C. Employees
D. All of the above

____12. The leadership for implementing TQM should remain with

A. Consultant
B. CEO
C. All employees
D. None of the above

____13. The long-term objective of the organization is contained in

A. Mission
B. Vision
C. Quality police
D. Goals

____14. Building virtual organization leads to

A. Improve quality management
B. More employees
C. More trouble
D. More customers

____15. If the CEO cannot spare tie for TQM activity, then it will be a
A. Success
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 B. Both A and C
C. Profit
D. Failure

____16. It is the sum of costs incurred by an organization in preventing poor quality

A. PAF
B. PDSA
C. COQ
D. TQM

____17. It includes incoming inspection, internal product audit, supplier evaluation dividing
process of final inspection
A. Appraisal costs
B. Prevention costs
C. Failure costs
D. All of the above

____18. This include education and training of employees, process improvement efforts, process
control, market research, etc
A. Appraisal costs
B. Prevention costs
C. Failure costs
D. Combination of A and B

____19. It incurred by an organization because the product or service did not meet the expected
requirements
A. Failure costs
B. Appraisal costs
C. Prevention costs
D. Product costs

____20. These are costs which cannot be identified

A. Failure costs
B. Hidden costs
C. Prevention costs
D. Reducing costs

III. ENUMERATION. Give what is being asked. (20pts.)

A. Accounts for Internal Failures:

1.
2.
3.
4.
5.
B. Types of Quality costs
6.
7.
8.

C. Process for Improvement

9.
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 10.
11.
12.
13.
14.
15.
16.

D. Consideration in Selecting Suppliers

17.
18.
19.
20.

IV. ESSAY. Answer the following question. Limit your answer to 5 sentences only. (10 pts.)

1. Explain why people do things wrong and do it and over again? (5pts.)
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

2. What is the purpose of the Mission Statement? (5pts.)

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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